Actionable news
0
All posts from Actionable news
Actionable news in BIOL: Biolase, Inc.,

Biolase Reports 2015 Third Quarter Results

The following excerpt is from the company's SEC filing.

IRVINE, CA (November 4, 2015) BIOLASE, Inc. (NASDAQ:BIOL), the global leader in dental lasers, today reported its financial results for the third quarter and nine months ended September 30, 2015.

Selected highlights of the 2015 third quarter include:

Worldwide revenue of $11.2 million was down $1.5 million, or 12% year over year, largely attributable to $0.7 million lower imaging revenue, and $0.6 million lower service revenue (e.g. training and service agreements) related to a favorable change in accounting estimate made in Q3 2014 to recognize deferred training revenue over a shorter time period that resulted in a one-time increase in the prior year.

Worldwide WaterLase® revenue was down 5% year over year and 2% sequentially, related to slower sales in the U.S. while International WaterLase revenue was flat year over year and grew 20% sequentially.

Worldwide diode laser system revenue grew 11% year over year, including a 5% increase in the U.S. and 16% increase internationally.

Operating expenses were flat with last years third quarter and lower by $2.0 million or 19% from last quarter with the largest reductions in G&A expenses.

President and CEO Harold Flynn, Jr., stated the Companys core laser franchise remained flat in the third quarter, with international sales increasing 5% year over year, offset by a 6% decline in U.S. sales during the same period. The third quarter is typically a relatively lower revenue quarter as dentists take summer vacations throughout the U.S. and Europe limiting our effective selling days. Despite these trends, we were encouraged by our third quarter revenue for worldwide diode systems, which grew 11% year over year, with the U.S. sales growing 5% and international sales growing 16%.

We continued to focus our energies on strengthening leadership, worldwide competitiveness, and attention to our professional customers and their patients in Third Quarter 2015, Flynn added. We also focused heavily on activities to improve our cash flow, including operating expenses during the quarter. In September 2015, we streamlined operations and reduced payroll-related and consulting-related expenses by approximately $2.4 million, net, on an annualized basis. Total expenses related to this restructuring during Third Quarter 2015 totaled approximately $246,000. We will begin to realize the favorable impact of these cost saving measures in the fourth quarter of 2015 and throughout 2016.

Third Quarter and Nine-Month Financial Results

Net revenue for the third quarter of 2015 was $11.2 million, compared to net revenues of $12.7 million for the third quarter of 2014. The quarter-over-quarter decrease of 11.6% was principally due to decreases in domestic imaging systems revenue, domestic and international services revenue, consumables and other revenue, and domestic license fees and royalty revenue. Worldwide laser systems revenue remained steady with a slight decrease of approximately $20,000, or 0.3%, quarter-over-quarter. The quarter-over-quarter decrease was also impacted by a change in accounting estimate totaling approximately $708,000 of recognized income during the third quarter of 2014 (the 2014 Change in Accounting Estimate) related to changing our revenue recognition for deferred training service revenue from 24 months to nine months.

Net revenue for the nine months ended September 30, 2015 was $34.0 million, compared to net revenues of $34.4 million for the nine months ended September 30, 2014. The overall year-over-year decrease resulted from decreases in domestic imaging systems revenue and services revenue primarily associated with the 2014 Change in Accounting Estimate, partially offset by increases in domestic and international laser system revenue, consumables and other revenue and license fees and royalty revenue. Laser systems revenue increased by approximately $1.4 million, or 6.8%, while net revenue from imaging systems decreased by approximately $1.7 million or 51.6%.

Gross profit as a percentage of revenue typically fluctuates with product and regional mix, selling prices, material costs and revenue levels. Gross profit as a percentage of net revenue for the third quarter and nine months ended September 30, 2015 was 30.1% and 30.3%, respectively, compared to 42.4% and 38.0%, respectively, for the same prior year periods. The decline was mainly attributable to the 2014 Change in Accounting Estimate, increased international sales volume and...


More